Job losses predicted with rise of robots and digital services

THE rise of robots and digital services will create both job losses and opportunities in North Cyprus, business representatives and experts have said.

Cyprus Turkish Shopkeepers and Artisans Chamber general coordinator Hürrem Tulga said: “As technology increases, digitisation increases, robotic developments increase, unemployment increases. This is the case with the whole world.

“We have had people try online sales but they didn’t take hold. For example, when people want to buy clothing, they want to see it.

“However, robotic applications have started in our country in areas such as printing. In other words, the work done by 10 people can now be done by two people.”

He called for greater investment in vocational and technical education and a fund to be set up for those who have lost their jobs to technology.

Mr Tulga accepted, however, that new technologies can also create new businesses.

Cyprus Turkish Commerce Chamber president Kemal Deniz said that the country needs to adapt to the digitisation of economies, which he said has accelerated due to the pandemic.

“Digitisation will affect all sectors, from education to tourism,” he said. “Therefore, we have to adapt to it. Otherwise, we will fall behind. People will now prepare for their careers based on this.

“There is already a need for training in many areas. . . The biggest problem in our country today is [the need for] a qualified workforce.”

Mr Deniz added that he did not believe that the increased use of technology will lead to a rise in unemployment “because other areas of business will open”.

Cyber security specialist Arda Topal said a digital economy will create more job opportunities, in areas such as social media and cyber security, but that more investment in digital infrastructure is required. He added that schoolchildren should learn computer coding as standard.

“Just as we speak Turkish or English, we need to know the digital world’s languages,” he said.

“These coding languages and robotic coding are taught in America and European countries.

“Students gradually learn the basics and start university with a certain knowledge. Universities in Europe and America do not accept candidates who know zero software language.

“It requires a certain degree of knowledge and is accepted accordingly.”

Gürkan Ateş, a professor at Girne American University’s Faculty of Business, said that companies in the TRNC need to reassess their competitive strategies by using “e-commerce” to reduce costs and increase efficiency, particularly in the services sector.

“In the short term there may be unemployment, perhaps in the unskilled workforce. Because all the work they will do is now done by computer technologies.

“However, there will be a need for qualified, educated people. There are a lot of examples of this. . . In the long run, there will be many advantages. In terms of competition, there will be advantages for small-sized companies to find a market for themselves.

“I believe that the pandemic period will end very soon. However when the normalisation process begins, nothing will be the same as before.”

In the meantime, the state should play a role in providing skills and retraining to unemployed people, he added.